The Real Costs of Care
Long Term Care
Caregiver costs reach far beyond the wallet.
According to a recent poll, the majority of caregivers describe providing care as worthwhile and say caregiving has a positive impact on their life.1 Caregiving can be rewarding, but also immensely challenging.
According to the National Institutes of Health, caregiving creates both physical and psychological strains, especially over extended periods of time.2 It also impacts financial stability, with 40% of caregivers saying their responsibilities have negatively impacted their household’s financial security.3
Long Term Care Insurance Provides Options
There are many ways to pay for care when you need it and where you’d like to receive it.
Financial Costs
In the wake of the pandemic, there has been a sharp rise in those forced to leave the job market to provide unpaid care. Those who remain employed while providing care still face financial setbacks.4
- Nearly 70% have missed work to provide care, and while most have used their sick, vacation, or personal time, many have also taken unpaid leave.
- Over 60% report negative impact on work.
- Among those who missed work to provide care, 29% are concerned about their job security.
Caregivers’ responsibilities also limit their career growth and job opportunities, reducing their ability to contribute to their own retirement. In addition to lost income and savings, nearly 80% of caregivers incur regular out-of-pocket costs related to caregiving, and family caregivers spend 26% of their income on caregiving activities.5
Logistical Costs
Most caregivers balance caregiving responsibilities while they are working, with the majority (60%) working 40 hours or more per week.7 Balancing work, family, and caregiving responsibilities takes a toll on caregiver well-being.
Many who provide informal care lack adequate training to provide that care. Over half of caregivers feel undertrained, and nearly one third have received hardly any or none of the training they needed to provide care. They also have limited access to programs designed to provide caregiver respite, making it even more difficult to navigate logistics.8
Physical and Psychological Costs
The demands of caregiving can impact a caregiver’s physical and mental health. Over time, caregivers may develop depression and anxiety, a weakened immune system, excess weight and obesity, and chronic diseases.9
Those caring for family or friends with cognitive impairment are particularly prone to feeling the stress of caregiving due to the extreme degree of physical and emotional care needed. Caregiver burnout is a very real phenomenon often caused by a combination of emotional and physical demands. When a caregiver reaches a state of emotional, mental, and physical exhaustion, both the caregiver and the patient suffer.
How LTC Insurance Can Help
Many LTC policies pay informal family caregivers, which can help secure a reasonable income and cover some caregiving expenses. Benefits can be used for caregiving training and also for adult day care that can provide a caregiver with some respite from the exhausting demands of caregiving.
LTC planning may be one of the most meaningful gifts you can give your family. LTC insurance can help solidify your plan for care, while providing the peace of mind that comes with knowing you’ve provided for your caregivers before they need to provide for you.
Learn more about how LTC insurance can help, or contact an advisor today.
1 The Associated Press-NORC Center for Public Affairs Research Survey, www.longtermcarepoll.org, accessed December 2023.
2 “Physical and Mental Health Effects of Family Caregiving,” National Institute of Health, accessed December 2023.
3 “Standing Up and Stepping In: A modern look at caregivers in the US,” Guardian’s 12th Annual Workplace Benefits Study, 2023.
4 The Associated Press-NORC Center for Public Affairs Research Survey.
5 “AARP Research Insights on Caregiving,” www.aarp.org., May 2023.
6 “Long-Term Care Consumer Survey,” Nationwide/Harris Poll survey (2021), nationwidefinancial.com.
7,8 AARP Research Insights on Caregiving .
9 “Caregiver Stress: The Impact on Physical Health,” National Council on Aging, www.ncoa.org, October 2022.
